The following data give the dates of successive turning points in U.S.economic activity and the corresponding levels of real GDP at the time. $$\begin{array} { c c c }
\text { Turning Point } & \text { Date } & \text { Real GDP } \
&&\text { (1996 } \$ \text { billions) }\
\text { (A) } & \text { July } 1953 & 1992.2 \
\text { (B) } & \text { May } 1954 & 1941.0 \
\text { (C) } & \text { Apr. } 1957 & 2182.7 \
\text { (D) } & \text { Apr. } 1958 & 2117.4 \
\text { (E) } & \text { Apr. } 1960 & 2391.0
\end{array}$$
Which of the turning points are troughs?

Question

The following data give the dates of successive turning points in U.S.economic activity and the corresponding levels of real GDP at the time. $$\begin{array} { c c c } 
\text { Turning Point } & \text { Date } & \text { Real GDP } \
&&\text { (1996 } \$ \text { billions) }\
\text { (A) } & \text { July } 1953 & 1992.2 \
\text { (B) } & \text { May } 1954 & 1941.0 \
\text { (C) } & \text { Apr. } 1957 & 2182.7 \
\text { (D) } & \text { Apr. } 1958 & 2117.4 \
\text { (E) } & \text { Apr. } 1960 & 2391.0
\end{array}$$
Which of the turning points are troughs?

Quizplus · Accepted Answer

Troughs in economic activity are points where the real GDP is at a local minimum before it starts to rise again. In the given data, May 1954 (B) and April 1958 (D) have lower GDP values compared to the preceding and succeeding points, indicating they are troughs.

The Following Data Give the Dates of Successive Turning Points